Represents a broader
application of the fixed fee
approach by assigning a large
portfolio of work to a single
firm for a fixed fee, usually
after a competitive bidding
process. Duration can vary,
but generally a multi-year
term ( 2 or 3-years) is
common; payment schedule
may be monthly, quarterly or
on another set period.

;All employment litigation
for a fee of X;

;All product liability
litigation of a certain type
for a fee of Y;

;All transactions of a
certain type for a fee of Z;

;All securities portfolio
filings for a fee of XX.

Fixes a set price to
“purchase” on a discounted
basis the full-time or half-time services of a certain
person or team, who then
produces the work required.

Situations in which a group of
matters is sufficiently similar,
recurring and predictable so
as to lend itself to relatively
consistent year-over-year
patterns in terms of activity and
fees.

Per Capita Fee/ “Ad Agency”ModelFor the coming year, payX to purchase 50% of thebillable hours for lawyers 1,
2, and 3 to work exclusivelyon this client’s identifiedmatters.

Situations in which a client
wants particular outside
lawyer(s) to be available and the
law firm is willing to provide a
discount in exchange for the
certainty of revenue in advance
– and the volume of work is
sufficiently predictable so as to
keep these folks busy.

Incentives/Performance-basedHold Back/SuccessFeesAligns interests by tyinga portion of law firmcompensation to outcomesachieved. (Can be used inconjunction with any ofthe value-based fee optionsdescribed above).

;Percentage (e.g., 20% or
some other number)
of fees billed will be set
aside by client and paid
to the law firm subject to
a multiplier (e.g. 0, 1, 2)
depending upon the extent
of success achieved (e.g.
win a motion to dismiss,
win a jury verdict, resolve
a matter below a specified
amount, close a deal by X
date, etc.);

;Without a holdback,
opportunity for bonus
based on results achieved
and value delivered (e.g.,
resolve a matter below
a specified amount, close
a deal by X date, reduce
number of new cases
in litigation portfolio by
certain percentage, etc.).
Bonus could be calculated
based on some portion of
the costs avoided or value
delivered.

Situations in which the client is
able to define success (entirely
or in part) according to
objectively measurable markers
that the law firm can help attain
via strong performance.